Presentación realizada por Gerry Greeve en la XII cumbre de operadores y reguladores REGULATEL / AHCIET

1. ¿por qué no ahora?
thoughts on the digital divide
Gerry Greeve
Vice President,
Intel Corporation. Sales and Marketing Group
Director, Intel World Ahead ™
1

2. Are we at an inflection point to bringing
the benefits of Broadband, Internet,
and Compute technology to:
• Our Small and Medium Businesses
• Our Schools and Universities
• Our Health Care Hospitals, Clinics, & Clinicians
• Our Export Industries
• Our Rural/Agrarian Communities
• Our Governments’ Services to Citizens
• …. And our FAMILIES ???
¿por qué no ahora? 2

3. “ICT” recognized as key to recovery
China a ppro ve s 3 G lic e ns e - $ 4 1 B
Inve s tme nt
Broadband Expansion Is Popular
in Stimulus Plans
Gov’t broadband can counter crisis threat
Philippine Daily Inquirer
UN Sec Ban Ki-moon - outlined a
vision to drive ICT to help the global
economic recovery.
“ICT are increasingly critical for global
Australian Prime Minister
development and human well-being. We
“broadband infrastructure will be the
platform upon which the economy must not allow today's economic downturn
operates in the 21st century” to slow progress in providing widespread
access to these essential tools."
South Korea Broadband Stimulus Plan
Promises 1 Gb/s By 2012…..Telecom Web
ITIF (Information Technology & Information Foundation study
The Digital Road to Recovery, Dr. Robert Atkinson, et al 3

4. Medium and Low Economies are falling further behind
154 countries
33
33 6 LATAM
44
14 LATAM
44
“…the global digital divide is as prevalent as before”
4

5. Is higher BB costs the reason??
Fix BB Internet cost as percentage of
GNI per capita Developing countries:
Position in the LAR Country % of GNI per
Lower fix phone cost
world capita
Equal cellular costs to MM
23 T&T 1.1% 10x higher fix BB internet costs
45 Panama 3.3%
50 CR 3.7%
54 Uruguay 4.6% Developed countries: cost of Broadband access:
60 Venezuela 5.1%
Between 0-3% monthly GNI
61 Mexico 5.3%
USA BB cost is 0.4%
71 Argentina 7.6%
72 Chile 7.6%
76 DR 9.5%
LAR, cost of Broadband access:
77 Brasil 9.6%
Only one country <3%: T&T
78 Jamaica 9.7%
TOP 8 Economies: 5% - 15%
84 Peru 12.7%
86 Colombia 13.4%
COMPARED TO 7 RISING ECONOMIES:
89 Ecuador 15.5%
Turkey, Russia, Romania,
94 Guatemala 16.7%
Poland, Vietnam, Thailand, RSA
101 Paraguay 25.1%
LATAM 7 ~ 3X cost as a % of GNI
In bold/blue the top LAR countries by GDP
Source: Measuring the Information Society, the ICT development Index. ITU 2009
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6. What’s needed to cross the DD??
• Affordable clients that deliver adequate capability
• Training and aids to learn how to use the clients
• Applications & Usage models that work
• Affordable, reliable, adequate networks
• Investment and committment
Are we at an inflection point
to bringing the benefits of Broadband, Internet,
and Compute technology and “cross the Digital
Divide”??:
6

7. Netbook & ULV Notebook Will Drive BB Demand
< $450 >
Netbook Notebook
M ulti-purpose PCs
 Device for the Internet
 Purpose built for Internet use  Business, Productivity, Entertain
 W Learn, Com unicate, View
eb: m  W 2.0
eb
Vietnam MIC-VTF Hinterland
Com pact form factor (7-10.2”) program  Regular, Daily, Serious w orkloads
 Internet Com panion Device Desktops (Atom™ based) of form factors
 Range
$ 220 USD < 2.5cm , <1.4Kg-3lb, >10.2”
-1” scrn
with 15.6” LCD monitors
Affordable clients 7
*Other nam and brands m be claim as the property of others
es ay ed
Intel Confidential – For Use By Customers Under NDA Only
Intel Confidential
*Other names and brands may be claimed as the property of others
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8. Computer Knowledge and Use is Viral
80% of learning is
-Doing (40%)
-Friends (40%)
8/08: 100M “friends” – 4/09: 200M “friends” = 100M new users in 8 months
8
Training and Aids

9. New Usage Models
In Developing Economies
Are Succeeding
Allowing Usage Spirals To
Develop
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10. PRC: 800K clinics/hospitals; 3.2M doctors
target – 5 “RCA”pc’s per clinic
“Rural Clinical Assistant” •Intel® Atom™ Processor
N270 at 1.6GHz
Durable drop-proof construction and •Intel® 945GSE Chipset
rugged outer case •1.5X system performance*
•~30% longer battery life*
Carrying handle – mobile-friendly design
•8.9” LCD
Water-resistant keyboard •1024 x 600 resolution support
software stack convertible
Basic – for a better user experience
• Hardware optimized applications
Chinese handwriting & pen-input
Web browser add-on  Webcam
• Quick launcher
• Image recovery
• Easy network manager
• Quick controller
Intel-powered convertible classmate PC
platform management
• Tablet with a touch screen, makes it easy to use
• System backup & restore • When open like a traditional laptop, the screen swivels
• Provisioning
180 degrees
• Patching & upgrade
• Advanced palm-recognition tech lets workers use full-hand
clinic assistant support when writing or drawing
• eForm (for insurance claims, personal records) • Built-in camera rotates 180 degrees
• Doctor education and decision aid tools • Integrated Accelerometer
• Drug search database
10

11. www.skoool.com
30 countries, 10 languages, 4million+ visitors/yr, WSIS, BETT awards,
250 math & science MM modules, RELPE integrated in LAR 11
IP FREE OF CHARGE

12. India
CSC’s
• Shared Access around for 16 years.
• Many Failures- Some Success
• #1 issue is self-sustainability
• Key Learnings
• Private ownership & investment critical
• Robust BB network and PC’s (virus)
• National & State Province leadership
– Organize/drive process
– Provide “outsourcing” revenue source (30%)
– mobilize remote e-government/utility service
• Clear & Real reduction/stop of funding
REVENUE GENERATION
• Government Services • Agriculture
– Certificates – Market linkages & sales:produce,
– Application to Government Schemes seeds, fertilizers, pesticides
– Surveys – Agri consultancy
• Education , Capacity Building • Financial Services
– Schooling, Higher Education – Loans, Deposits, Insurance
– Vocational • Commercial Services
• Healthcare Services – Retailing 12
– Telemedicine – Specialist consultancy – Payments

13. SME – Export
Solution
Package
• First joint business bundle:
• Affordable Intel HP Laptop
• Local broadband connectivity
• Accounting package
• Four training courses
• Scaling strategy
• Verify initial success
• Scale via other local
commerce organizations
• Re-use business training
materials within and beyond
Ghana
• Case study
13

14. PRC “Thousand Villages”
Farmer Information and PC Program
with China Telecom
Ministry of Commerce
14

15. 3G Growth Ignite new PC/NB users
CHINA
India
Turkey Vietnam
’09 3G Cell
Auctions/Awards
anticipated
300 - 400M New subscribers in next 24 months
…150-200M PC cards & dongle per year by 2013 15
…per GSMA & ABI

16. 3G Is Not A Complete Solution
“The reality of 3G networks being
overloaded
With PC & Smartphone data is with us
TODAY ! “
3G is not sufficient BB for data
•Interim connectivity solution
•Individual nomadic usage
•Slow, inconsistent & expensive
•Reasonable geo coverage
•Globally, mobile data traffic will double every year through 2013,
increasing 66 times between 2008 and 2013.
•In the 7 years from 2005 to 2012, mobile data traffic will have
increased a thousand-fold.
CISCO™ Forecast Mobile Data (Jan
29, 2009)
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17. 2015 – Average MM Subscriber uses 14GBytes+ per month
= 30 MB / Mo.
=
17

18. Country Telco(s) Launched Probable
1 Korea KT yes
~4G WBB 2
3
4
Japan
USA
Netherland
UQ
Clear
yes
yes
yes
is 5
6
7
Pakistan
Philippines
Sri Lanka
Wateen
Smart, Globe
Dialog
yes
yes
yes
Here Today 8
9
10
Malaysia
India
Australia
Packet-1,YTL
Tata(VSNL), BSNL
Unwired
yes
yes
yes
11 Singapore Qmax yes
12 Chinese Taipei VMAX yes
•40+ countries with significant 13
14
Thailand
Cambodia
tbd
Millicom yes
WiMAX Commercial Service 15
16
Indonesia
Blangadesh
tbd
tbd
17 Vietnam tbd
India 2H09 18
19
Romania
Bulgaria
Orange
Max, Nexcom
yes
yes
20 Hungary MobilHungary yes
21 Poland Netia etc. yes
•USB Dongle Clients ~ $50 22
23
Slovakia
Croatia
Wimax Telecom
Wimax Telecom
yes
yes
24 KSA STC, ITC yes
25 Turkey tbd
26 Egypt tbd
•Network infrastructure 27
28
Libya
Iraq
LTT
Iraq Tel
yes
yes
•< DSL OP/CAPEX 29
30
Nigeria
Kenya
Horizon
KDN
yes
yes
31 Algeria AlgTel yes
•~ = 3G 32
33
RSA
Bahrain
Vodacom, WBS
Zain (MTN)
yes
yes
34 Jordan Umniah yes
35 Morocco Wana yes
•Performance today 36
37
Kazakstan
Ukraine
tbd
UHT, Astelit
yes
yes
38 Russia Comstar, Scartel yes
512kup-6Mbpsdown $40/mo 39
40
Colombia
Chile
Avantel, Une
Telmex, VTR, Entel
yes
yes
41 Bolivia VIVA/Novatel yes
42 Argentina Telmex yes
•1 Billion pops covered by 2011 43
44
Peru
Mexico
eMax, Telmex
MVSNet
yes
yes
•75M-100M subs by 2014 45
46
Brazil
Venezuela
Embratel(Telmex), TVA(Tef)
Movimax
yes
yes
47 Panama WiPET yes
•Data Overlay to Voice model 48 Carib DiGiCel yes 18
49 DR WINTEL yes
50 Ireland IB, Clear Yes

19. • Governments Are “Stepping-up”
With Investment and Support
…Telecommunications Industry is too
19

20. Policy Impact on Local Economy
• Subsidies for PC’s and BB
– PRC, Spain, Vietnam, Singapore, India
• VAT reductions: numerous examples around the world
– PRC, Australia, Colombia, India, Vietnam, Turkey, etc
• Turkey - 3 month 10% reduction
• Australia - 50% tax rebate on all PCs purchased for Ed
• Colombia - eliminated VAT on PCs
• Brazil – BB service VAT reduction in 3 states
• Vietnam 15% VAT reduction
• Increased investment in BB infrastructure
Increased PC & BB purchases help local economies
grow & compete 20

21. Leading uses of USF for Broadband
Co untry De s c riptio n
Turkey Subsidizing BB to 18000 rural schools; 4500 Public Internet Centers,
700ku school PC 07/08
Nigeria Accelerate BB in State Capitals, train 3000 educators; 35000 CMPC
Pakistan BB Coverage 2010 goal=from .1 to 1.5M BB subs; 10k rural PC centers
Chile BB c o nne c tivity 2010 g o al= fro m 1% to 90% o f rural are as
Morocco Subsidize BB connect to schools + Teachers Laptop
Romania 600 Telecenters
Portugal 400M Euro subsidy of NB's + 3G from spectrum auction
Vietnam Internet to Villages  4,400 Connected Com unities
m
India $100M USF Rural PC subsidy $100 + $3/m BB
o US F is an
Co lo mbi $ 300 M Bro adband (larg e s t us e o f US F fo r Bro adband ) s c ho o ls , e - Additio nal s o urc e
a g o v,
Pe ru >3,000 rural c o mmunitie s w / pho ne and inte rne t ac c e s s with US F o f S timulus funding
Arg e ntin 1 s t pro g ram e ve r appro ve d this April. 1500 rural c o mmunitie s and
a the ir s c ho o ls with pho ne and inte rne t ac c e s s .
21

22. We are at an inflection point which can
ALLOW US TO CROSS THE DIGITAL DIVIDE:
• Our Small and Medium Businesses
• Our Schools and Universities
• Our Health Care Hospitals, Clinics, & Clinicians
• Our Export Industries
• Our Rural/Agrarian Communities
• Our Governments’ Services to Citizens
• …. And our FAMILIES
¿por qué no ahora? 22

23. What might be the
Role of Government??
• Enable the ICT indus try w national plans, policy, & open com
ith petition
• Including financing, subsidies, and lowtaxation on IT
• Embrace ne w te c hno lo g ie s and role model their uses: W AX, 3G,
IM
FTTH
• Rapidly provide useable and useful spectrum
• Enable a vibrant LOCAL Dig ital Ec o no my … particularly Software
developm ent
• Invest in Educ atio n: focused on 21 st Century Skills usage.
- Curriculum w
s hich are relevant to the challenges of today and tomorrow
• Invest in re s e arc h and de ve lo pme nt
LEAD FROM THE FRONT!
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24. STATE OUR VISION, OBJECTIVE, AND WILL
… MUST SET PUBLIC & MEASUREABLE GOALS
• K-12 schools - 90% of schools with BB,
– teacher pc training,
– widespread pc proliferation (student:PC ratio defined),
– local education ISV growth
• SMB’s in towns >2000 pax w/ affordable, reliable BB
– tax relief for BB & ICT
• SHARED BB ACCESS: CSC’s , PC’s within 1 hour walk
• HEALTH - 100% of medical clinics with BB & pc’s
• UNIVERSITY/COLLEGE - WBB umbrella and NB for all
• INFO-SERVICE - Internet based for medicine, agriculture, e-Gov
• WBB in deployment (3G and 4G)
– Measurement of access & QOS (uptime, cost, consistent speed)
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25. LEAD FROM THE FRONT!
Thank You
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